Radico Khaitan is positioning white spirits as a major growth opportunity for India’s alcoholic beverage industry as the company continues to diversify beyond its traditional whisky-led portfolio. Managing Director Abhishek Khaitan said whisky will remain the backbone of the Indian spirits market, but categories such as vodka, gin, agave spirits and premium cocktails are expected to gain momentum as younger urban consumers increasingly seek premium, lighter and experience-led beverages.
According to Khaitan, the growth of white spirits is being driven by the rapid expansion of young urban drinkers and rising demand for premium products. Changing consumer preferences, cocktail culture and greater exposure to international drinking trends are encouraging consumers to explore lighter and more versatile categories. This is creating significant growth opportunities for vodka, gin and agave-based spirits in India.
Radico Khaitan, traditionally known for high-volume brands such as 8PM whisky, Old Admiral Brandy and Contessa rum, has been steadily expanding its premium portfolio. The company now has brands across premium Indian spirits, including Jaisalmer gin, Rampur Indian single malt whisky and Magic Moments vodka. Radico Khaitan has also entered newer categories and plans to expand further into tequila and other premium international-style spirits.
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Khaitan said diversification remains a key strategic pillar for Radico Khaitan because it enables the company to participate across multiple consumer occasions, price points and categories while reducing its dependence on any single segment. The company’s expansion across luxury whisky, gin, rum and vodka, along with its plans for tequila, reflects its ambition to build a broad premium spirits portfolio for both Indian and international consumers.
The company has also strengthened its presence in premium white spirits. Last year, Radico Khaitan launched The Spirit of Kashmyr vodka with ambitions of developing it into a leading global brand. It is also a joint venture partner in D’Yavol Spirits, the spirits venture associated with Bollywood actor and producer Shah Rukh Khan, which has a Polish vodka and Scotch whisky offerings and is preparing to enter the tequila segment.
White Spirits Growing Faster, but Whisky Remains Dominant
Khaitan expects vodka, gin and agave spirits to increase their share of India’s spirits market as urbanisation, cocktail culture and younger legal-drinking-age consumers expand the country’s premium drinking repertoire. However, he believes whisky will continue to dominate the Indian market in terms of absolute volumes for the foreseeable future.
According to Khaitan, white spirits are currently growing at roughly twice the rate of the overall market, although they are expanding from a relatively small base. He believes these categories will increasingly influence the next phase of growth in India’s alcoholic beverage industry.
Radico Khaitan Sees Major Potential in Vodka
Vodka is one of the key categories in Radico Khaitan’s growth strategy. Khaitan described India’s vodka market as undergoing a structural transformation, highlighting the significant difference between vodka’s global and Indian consumption shares. Globally, vodka accounts for nearly 28% of spirits consumption, while in India it represented around 4.5% of the IMFL market in FY2026, indicating considerable headroom for future growth.
Gin and agave-based spirits are also at an early stage of category development in India but are attracting consumers looking for premium and differentiated drinking experiences. The growth of cocktail culture, premium bars, modern retail, international travel and changing consumer preferences is creating favourable conditions for these categories to grow faster than the broader spirits market.
Magic Moments Drives Radico’s Vodka Growth
Radico Khaitan claims a leading position in India’s vodka market through its Magic Moments brand, with more than 60% market share. The brand sold around 3.25 million cases in the first quarter of 2026, registering 43% year-on-year growth.
Flavoured vodka has emerged as a major growth driver for the category. According to Khaitan, flavoured variants account for approximately 65% of total vodka volumes in India and nearly 70% of Magic Moments volumes, reflecting strong consumer interest in experimentation and new flavour profiles.
Magic Moments has responded to this trend with flavour-led products designed to appeal to contemporary Indian consumers. Its Flavours of India range, featuring Jamun, Mango and Thandai expressions, has reportedly received strong consumer demand and highlights the increasing localisation of global spirits categories for Indian tastes.
UK-India FTA Could Boost Premium Spirits
The recently concluded UK-India Free Trade Agreement could also support the premiumisation of India’s spirits market, according to Khaitan. He believes lower customs duties on Scotch whisky could improve supply-chain efficiency, increase accessibility of premium international spirits and encourage consumers to trade up over time.
For Radico Khaitan, the agreement could have particular significance because the company is among India’s major Scotch whisky importers, with estimated annual Scotch imports exceeding ₹250 crore. Khaitan expects the agreement to provide sourcing and cost advantages while supporting the company’s premium whisky portfolio.
Radico Khaitan is also preparing to establish a dedicated Scotch whisky division, with plans to acquire and operate a distillery. The move is expected to provide access to established distillation and maturation supply chains and improve cost efficiencies in the company’s Scotch whisky operations.
Uttar Pradesh, Andhra Pradesh, Rajasthan and Madhya Pradesh Offer Growth Potential
At the state level, Khaitan identified Uttar Pradesh, Andhra Pradesh, Rajasthan and Madhya Pradesh as markets showing strong performance and significant growth potential. Rising incomes, increasing urbanisation and growing consumer demand for premium spirits are supporting market expansion across these states.
However, the Indian alcobev industry continues to face structural challenges. Khaitan pointed to fragmented state-level regulations, high and sometimes unpredictable taxation, the exclusion of alcoholic beverages from the Goods and Services Tax regime, and restrictions affecting marketing and retail infrastructure.
Raw material availability and periodic inflationary pressures across the supply chain also remain concerns for spirits manufacturers. At the same time, expanding newer categories requires sustained investment in consumer education, awareness and long-term brand building.
Despite these challenges, Radico Khaitan remains positive about the long-term outlook for India’s alcoholic beverage industry. Rising disposable incomes, favourable demographics, urbanisation, premiumisation and increasing consumer acceptance of premium spirits are expected to create significant opportunities. While whisky is likely to retain its dominant position, the rapid growth of vodka, gin and agave spirits could make white spirits an increasingly important part of India’s next phase of alcobev growth.
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